USD/CAD Lower, EUR/CAD Higher as European Situation Improves

The Canadian dollar advanced against the US currency and weakened against the euro as the situation in Europe showed signs of improvement, boosting attractiveness of commodity currencies.

The positive news from Europe were well received by market, helping growth-related currencies, like the loonie (the usual nickname of the Canadian currency). The Standard & Poor’s/TSX Composite Index gained 1.4 percent, while the S&P 500 Index rose 2 percent. Crude oil futures advanced 1.7 percent to $99.22 per barrel in New York.

The story of the European debt is far from over, though, and it’s nearly impossible to predict how market participants will behave next week. Yes, Italy agreed to implement the austerity measures. Yes, Greece almost got new leader. But that doesn’t mean that all the problems would disappear overnight and market mood may shift in any direction according to news or even speculations.

USD/CAD closed at 1.0099 after opening at 1.0169 and rising to 1.0230. EUR/CAD closed at 1.3887, higher than opening rate of 1.3838, while the intraday high was 1.3957.

If you have any questions, comments or opinions regarding the Canadian Dollar,
feel free to post them using the commentary form below.